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Environmental economics

Support to sectoral policies: Air/transport

Estimates of marginal external costs of air pollution in Europe(2002 and 2005)

In 2002, DG Environment had prepared estimates of externalities for air pollution in the EU. The following report gives the external costs in terms of euros per tonne for SO2, NOx, VOCs, ammonia and particulate matter for each EU Member State: had prepared a database of externalities for air pollution in Europe as part of the the This gives the marginal external costs of air pollution (SO2, NOx, VOCs and PM10) in terms of euros per ton of pollutant for each EU Member State. Furthermore, these external costs are divided between rural and urban areas. Finally, preliminary estimates of the externalities from shipping are given for the Eastern Atlantic, Baltic Sea, English Channel, Northern Mediterranean, and North Sea.The database was largely based on existing data generated by the ExternE project and taking into account the approach to valuation of mortality recommended by economics experts at a workshop convened by DG Environment. The default values of the database are available in two versions, both in pdf format:

These estimates of marginal external costs of air pollution have been updated in 2005 as part of the cost benefit analysis of the Clean Air for Europe Programme (CAFE). See Estimates (2005) of marginal external costs of air pollution in Europe. It needs to be emphasised that the values are context sensitive and thus need to be used with caution.

Economic Evaluation of Air Quality Targets for Heavy Metals (2001)

The European Commission has in recent years produced several Directives that aim to regulate air pollution by setting limits for the allowable concentration of pollutants in ambient air. Directives have already been agreed that cover pollutants such as sulphur dioxide, lead and carbon monoxide. For some other pollutants, such as the heavy metals arsenic, cadmium and nickel, the Commission intends to bring forward legislation in the near future. These heavy metals are pollutants that may be linked to a higher risk of lung cancer when breathed in. They are mainly produced through combustion processes, for industrial and commercial power generation. There are also some emissions from large industrial processes in the metals industry, such as blast furnaces. This particular study examines the benefits to human health of reducing concentrations of these metals in the air to meet different possible limit values, and examines the economic costs that would be involved in meeting these limit values.

Economic Evaluation of Air Quality Targets for PAHs (2001)

The European Commission has in recent years produced several Directives that aim to regulate air pollution, by setting limits for the allowable concentration of pollutants in ambient air. Directives have already been agreed that cover pollutants such as sulphur dioxide, lead and carbon monoxide. For some other pollutants, such as poly aromatic hydrocarbons, the Commission intends to bring forward legislation in the near future. Poly aromatic hydrocarbons (PAHs) are pollutants that may be linked to a higher risk of lung cancer. They are mainly produced through combustion processes, such as domestic woodburning. There are also some emissions from vehicles, and hotspots can arise around certain industrial processes, such as aluminium smelters. This particular study examines the benefits to human health of reducing concentrations of PAHs in the air to meet different possible limit values, and examines the economic costs that would be involved in meeting these limit values.

Economic, legal, environmental and practical implications of a European Union System to reduce ship emissions of SO2 and Nox (2000)

The aim of the study is to consider, analyse and recommend policy options to further the objective of reducing the harmful environmental impact of emissions of SO2 and NOx from ships operating in European waters. The policies that have been considered are of both a regulatory and an incentive-based nature.

The main chapters of the report present the salient points and discuss the essential issues, while the appendices to this report contain a great level of detail and have been contributed by the individual experts:

Appendix 1(pdf ~140K): Levels and characteristics of shipping traffic, marine fuel use and resulting atmospheric emissions in European waters

Appendix 2(pdf ~580K): Atmospheric emissions & air quality

Appendix 3(pdf ~100K): Existing environmental differentiation schemes

Appendix 4 (pdf ~500K): Legal analysis: prescription, enforcement and observance

Appendix 5 (pdf ~150K): Marine fuels & ship emission controls

Appendix 6 (pdf ~1,570K): Environmental assessment of policy options

Appendix 7(pdf ~200K): Economic analysis of policy options

Main report (pdf ~480K)

Economic evaluation of a Directive on National Emission Ceilings for Certain Atmospheric Pollutants (1999)

The study makes an assessment of what set of national emission ceilings would be most cost-effective in meeting the different possible targets for reducing ozone and acidification. For each target the cost effective set of ceilings was calculated, taking into account differences in abatement costs between member states, and the different impact of pollutants depending on their point of origin. Three scenarios (high, central and low ambition) were examined for meeting ozone targets. Three additional scenarios were examined in which targets were set for both ozone and acidification. For each scenario, the consultants calculated what set of emission ceilings would allow the targets to be met across Europe at least cost. This analysis was performed using a detailed model of emission sources and costs of pollution control technologies (the RAINS model).

Economic Evaluation of Air Quality Targets for CO and Benzene (1999)

The study is to identify and estimate the costs and benefits of meeting ambient air quality standards for carbon monoxide (CO) and benzene in the EU. The study should take the range of scientifically-based limit values for ambient air quality as given and analyze the costs and benefits of attaining these standards. These costs and benefits should be compared with the costs (loss of benefits) of no further action beyond current legislation. Costs are to be determined on the basis of least-cost solutions.

Economic evaluation of air quality targets for tropospheric ozone (1999)

The study identifies and estimates the (least) costs and benefits of meeting ambient air quality standards (different sets of limit/target values) for tropospheric ozone in the EU, taking into account deposition constraints for acidification.

Part A describes the methodology of the analysis and reviews the databases used for the scenario calculations.

Part B presents a range of scenarios for reductions in ground-level ozone, acidification and eutrophication and assesses their costs.

Part C assesses the monetary benefits of the scenarios presented in part B.

Review of the software structure of the TREMOVE model (1999)

The Auto-Oil II Cost-Effectiveness Study (1999)

Study below was undertaken in the context the of the Auto-Oil II Programme. Parts I through III of the reports relate to the method, scope, tools and reference scenarios (i.e. the AOP-II Transport Base Case).  All reports are available in pdf format (~ 160k)

PART I:

PART II:

PART III:   

DATABASES